Hi Bob, this article provides some solid information regarding a proper Loan Mod for your friend:

http://docs.Steven-Anthony.com/EffectiveLoanMods.pdf

Hi Al,

I am very sorry to hear of your friend’s situation. I won't repeat some of the sound advice provided below.

The success level of the Loan Modification program has been pretty poor in my opinion, due to it only allowing for 105% LTV in the beginning (note that the Federal government is coming out with 125% LTV Fannie & Freddie loans for this program). As of 7/13/09, Making Home Affordable has only helped 270,000 borrowers received loan modifications. The target is 4,000,000, which at this rate would take us about 14 years to reach. Considering the depth of the problem, this does not give one a “warm and fuzzy” feeling does it?

If you want to view Loan Mod guidelines see:
http://docs.Steven-Anthony.com/LoanModGuidelines.pdf

(Please refer to the link at the top of the page for a list of HUD-approved counseling agencies)

Best, Steve

Unfortunately they are no real good answers - perhaps some suggestions. But depending on the lender, she may have a decent chance for a loan modification. A loan mod is a long route to go, again depending on the lender. She would have to be very persistent calling, faxing and emailing almost daily to help exepedite the loan mod. DO NOT have her pay for a loan mod unless it is from a reputable attorney based on a referral from a good friend or family member.

The other choice would be to attempt to short sale her home - assuming she would be up for it (again a lenghty process with no real guarantees). I just spoke with a person in a similar situation this week - first advice would be to speak with your accountant and then your attorney(ask for referrals if you need some names) if they advise you to go the short sale route then give a realtor a call (i'd be happy to advise or offer some help) Let me know..Thanks

Unfortuantely there are mostly promises of help - but no real help. Talk to Anne Baird at Allyson Huber's office on Pine Street. See if our government representatives can help out.
Banks do not care. They appear to be giving only lip service and PR to the problems. Obama's newest plan helps a select group of borrowers who are upside down on the loan by no more than 25%.
Your friend's situation is especially sad as it comes from a situation out of her control. Good people are being hurt by the bank's greed in selling loans to anyone regardless of income.
If anyone tells you or her that they can modify her loan - ask to see who they have helped in the past. The modifications are public documents recorded in Stockton at the Recorder's office. If they will give you a name or address I can search the public records to see if it really happened.
More greedy people are preying on good people who need their loans modified. Be careful.
I wish you and your friend the best in finding a solution.
God Bless,
Steve Davis
Realty World - Davis Homes & Properties